Introduction: Stock
Wouldn't you love to be a business owner without ever having to show up at work? Imagine if you could sit back, watch your company grow, and collect the dividend checks as the money rolls in! This situation might sound like a pipe dream, but it's clor to reality than you might think.
As you've probably guesd, we're talking about owning stocks. This fabulous category of financial instruments is, without a doubt, one of the greatest tools ever invented for building wealth. Stocks are a part, if not the cornerstone, of nearly any investment portfolio. When you start on your road to financial freedom, you need to have a solid understanding of stocks and how they trade on the stock market继续教育研修总结.
Over the last few decades, the average person's interest in the stock market has grown exponentially. What was once a toy of the rich has now turned into the vehicle of choice for growing wealth. This demand coupled with advances in trading technology has opened up t
he markets so that nowadays nearly anybody can own stocks.
Despite their popularity, however, most people don't fully understand stocks. Much is learned from conversations around the water cooler with others who also don't know what they're talking about. Chances are you've already heard people say things like, "Bob's cousin made a killing in XYZ company, and now he's got another " or "Watch out with stocks--you can lo your shirt in a matter of days!" So much of this misinformation is bad on a get-rich-quick mentality, which was especially prevalent during the amazing dotcom market in the late '90s. People thought that stocks were the magic answer to instant wealth with no risk. The ensuing dotcom crash proved that this is not the ca. Stocks can (and do) create massive amounts of wealth, but they aren't without risks. The only solution to this is education. The key to protecting yourlf in the stock market is to understand where you are putting your money.
It is for this reason that we've created this tutorial: to provide the foundation you need to make investment decisions yourlf. We'll start by explaining what a stock is and the diffe
rent types of stock, and then we'll talk about how they are traded, what caus prices to change, how you buy stocks and much more. 摘抄词语
Stocks Basics: What Are Stocks?
The Definition of a Stock
Plain and simple, stock is a share in the ownership of a company. Stock reprents a claim on the company's asts and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity然是什么意思, or stock, it all means the same thing.
Being an Owner
Holding a company's stock means that you are one of the many owners (shareholders) of a company and, as such, you have a claim (usually very small) to everything the company owns. Yes, this means that technically you own a tiny sliver of every piece of furniture, every trademark, and every contract of the company. As an owner, you are entitled to your share of the company's earnings as well as any voting rights attached to t
he stock.
A stock is reprented by a stock certificate. This is a fancy piece of paper that is proof of your ownership. In today's computer age, you won't actually get to e this document becau your brokerage keeps the records electronically, which is also known as holding shares "in street name". This is done to make the shares easier to trade. In the past, when a person wanted to ll his or her shares, that person physically took the certificates down to the brokerage. Now, trading with a click of the mou or a phone call makes life easier for everybody.
花开莱州
如何练腹肌最快最有效Being a shareholder of a public company does not mean you have a say in the day-to-day running of the business. Instead, one vote per share to elect the board of directors at annual meetings is the extent to which you have a say in the company. For instance, being a Microsoft shareholder doesn't mean you can call up Bill Gates and tell him how you think the company should be run. In the same line of thinking, being a shareholder of Anheur Busch doesn't mean you can walk into the factory and grab a free ca of Bud
Light!
The management of the company is suppod to increa the value of the firm for shareholders. If this doesn't happen, the shareholders can vote to have the management removed, at least in theory. In reality, individual investors like you and I don't own enough shares to have a material influence on the company. It's really the big boys like large institutional investors and billionaire entrepreneurs who make the decisions.
For ordinary shareholders, not being able to manage the company isn't such a big deal. After all, the idea is that you don't want to have to work to make money, right? The importance of being a shareholder is that you are entitled to a portion of the company’s profits and have a claim on asts. Profits are sometimes paid out in the form of dividends. The more shares you own, the larger the portion of the profits you get. Your claim on asts is only relevant if a company goes bankrupt. In ca of liquidation, you'll receive what's left after all the creditors have been paid. This last point is worth repeating:
the importance of stock ownership is your claim on asts and earnings. Without this, the stock wouldn't be worth the paper it's printed on.
Another extremely important feature of stock is its limited liability, which means that, as an owner of a stock, you are not personally liable if the company is not able to pay its debts. Other companies such as 郑慧玲partnerships are t up so that if the partnership goes bankrupt the creditors can come after the partners (shareholders) personally and ll off their hou, car, furniture, etc. Owning stock means that, no matter what, the maximum value you can lo is the value of your investment. Even if a company of which you are a shareholder goes bankrupt, you can never lo your personal asts.
Debt vs. Equity
Why does a company issue stock? Why would the founders share the profits with thousands of people when they could keep profits to themlves? The reason is that at some point every company needs to rai money. To do this, companies can either borrow it from somebody or rai it by lling part of the company, which is known as issuing stock. A company can borrow by taking a loan from a bank or by issuing bonds. B
oth methods fit under the umbrella of debt financing读书笔记手抄报. On the other hand, issuing stock is called equity financing. Issuing stock is advantageous for the company becau it does not require the company to pay back the money or make interest payments along the way. All that the shareholders get in return for their money is the hope that the shares will someday be worth more than what they paid for them. The first sale of a stock, which is issued by the private company itlf, is called the initial public offering (IPO).
